The Good Glamm Group delays December salary payments

Content-to-commerce unicorn The Good Glamm Group has delayed salary payments for December, with some employees receiving only partial payments, according to two people familiar with the matter. The company is also said to be exploring the sale of some of its brands to raise funds, they added.

“The delay in salary disbursement was communicated to employees during a town hall on Thursday,” one source said.

While one group of employees—those earning Rs 50,000 or less—received their full salaries on Thursday after a one-day delay, others earning above that threshold were paid only half, with the remainder expected by the end of the month, the second source said. “Approximately 500 employees fall under the Rs 50,000 salary bracket, while 150-200 employees were affected by the partial payment,” the source added.

The Prosus-backed unicorn has been navigating challenges exacerbated by the funding winter. Its last significant funding round of $150 million occurred in November 2021, followed by a $30 million infusion in March 2023 from existing investors, including Warburg Pincus, Bessemer Venture Partners, and Accel Partners.

The Good Glamm Group declined to comment on the matter.

Over the years, the company has acquired several D2C beauty and personal care brands, including Sirona, MomsCo, and Organic Harvest. However, it has faced difficulties meeting financial commitments to the founders and investors of these acquisitions. For instance, Indian Angel Network, an investor in Sirona, sent a legal notice in April 2023 over delayed payments, which were ultimately settled in October.

The company has also seen a series of high-profile exits in the past year, including co-founder Priyanka Gill and Good Brands CEO Sukhleen Aneja.

The development comes amid growing turbulence in the beauty and personal care sector, with companies like Honasa Consumer (Mamaearth) witnessing a dip in sales due to sluggish consumer demand.